What is the deadline for reaching a settlement through mediation with Craters & Freighters?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
cost of mediation and Franchisor and Franchisee will share mediator fees equally. Each party will use best efforts to resolve the dispute involving the Claim through mediation. The parties hereto will have sixty (60) days to reach a settlement; such sixty (60) day period will begin on the date that Franchisee has submitted such claim to the AAA. Notwithstanding the foregoing, for the sake of clarity, any controversy, dispute, or claim concerning the following will not be required to be submitted to mediation: (i) any federally protected intellectual property rights in the Marks, the System, or in any Trade Secrets, Confidential Information, or other confidential information; (ii) any of the restrictive covenants contained in this Agreement; and (iii) any of Franchisee's payment obligations under this Agreement.
- 23.3 Arbitration.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, if a dispute arises that requires mediation, the franchisee and Craters & Freighters have a limited time to reach a settlement. Specifically, they have sixty (60) days to reach a settlement through mediation. This 60-day period begins on the date the franchisee submits the claim to the American Arbitration Association (AAA).
It's important to note that not all disputes require mediation. Disputes concerning federally protected intellectual property rights, restrictive covenants within the agreement, and the franchisee's payment obligations are excluded from mandatory mediation. These types of disputes may be handled differently, potentially through arbitration or legal action.
If the dispute is not resolved through mediation within the 60-day timeframe, the franchisee is then required to submit the claim to arbitration. This arbitration must take place in either Jefferson County or Denver County, Colorado, following the Commercial Arbitration Rules of the American Arbitration Association. The decision reached through arbitration can be enforced in any court with the appropriate jurisdiction.